GOCCs remit P18.6B to NG in Feb

MANILA, Philippines - Dividends remitted by government-owned and controlled corporations (GOCCS) amounted to P18.6 billion in February 2012, according to latest data from the Department of Finance.

The February dividends boosted the collections of the Bureau of the Treasury (BTr) by more than 600 percent. These remittances also pulled up year-to-date collections of the BTr to P31.187 billion.

Dividends from GOCCs have hovered in the P10-billion level in recent years but the government has been pressing state-owned firms to remit more to state coffers.

The Land Bank of the Philippines (Landbank) and the Development Bank of the Philippines (DBP), two government financial institutions; the PNOC-Exploration Corp., the exploration arm of Philippine National Oil Co.; and the Philippine Amusement Gaming Corp. (Pagcor) were among the biggest contributors.

Landbank poured in P5 billion in dividends during the month while DBP contributed P4 billion data showed.

PNOC-EC, meanwhile, remitted P2 billion in dividends while Pagcor gave P1 billion.

The Manila International Airport Authority (P1.1 billion), the Philippine Ports Authority (P1.2 billion) and the Civil Aviation Authority of the Philippines (P1.36 billion) were also among the top contributors during the month.

Dividends form part of the National Government’s total revenues.

Under Republic Act 7656 or the Dividends Law of 1994, GOCCs and government financial institutions (GFIs) are required to remit half or 50 percent of the income earned in each fiscal year to the National Government.

The remittance should be in the form of cash or in real estate properties with clean titles.

Fiscal officials said that the government corporate sector has been a significant contributor to growth and development in the past.

However, authorities also believe that the government can still generate more revenues from the assets of GOCCs.

Citing data from Goldman Sachs, the Department of Finance said there is approximately $141 billion worth of assets of the GOCCs which the government can improve under a market-based operation.